Lords Defy UK Government on Digital Assets Strategy
The UK government suffered a significant setback in its efforts to regulate digital assets as the House of Lords voted in favor of an amendment requiring the Treasury to develop a national strategy for regulating these assets.
The amendment, proposed by Conservative peer Baroness Neville-Rolfe, was approved with 194 votes in favor and 138 against. The new clause would require the Treasury to prepare, publish, and consult on a strategy for regulating digital assets and related financial market infrastructure in the UK.
The regulation of digital assets includes cryptoassets, qualifying stablecoins, Central Bank Digital Currencies, tokenized securities, and other digital and tokenized financial assets. This comes as the UK is currently drafting a sweeping new crypto bill, with the Financial Conduct Authority finalizing its regulatory framework for cryptoassets in June.
The regulation of digital assets is an area where the UK is lagging behind other major economies, including Brussels and Washington, which have already established their own frameworks. The EU's Markets in Crypto-Assets regulation has been in effect since December 2024, while the U.S. signed the GENIUS Act into law in July 2025 to establish a federal framework for dollar-backed tokens.